Open Orphan (LON: ORPH) shares are trading higher on Monday after it announced a proposal to make a distribution in specie of the entire issued share capital of its wholly-owned subsidiary, Orph Pharma IP, to Poolbeg Pharma, in return for the issue of new shares by Poolbeg to Open Orphan shareholders.
Open Orphan shareholders have already granted approval with shares marked “ex-rights” on 16 June 2021. Shareholders will receive one Poolbeg Share for every 2.98 ordinary shares held in the company.
However, there will be a lock-up period for relevant shareholders who receive Poolbeg shares. They will not be able to sell, transfer or deal in Poolbeg Shares for 9 calendar months.
Croft Nominees Limited will hold the legal title to the Poolbeg shares until the date, which is 9 months from admission. Once the lock-up expires, Croft will then ass the share certificate to Poolbeg's registrar and will execute the stock transfer forms to the relevant shareholders.
Open Orphan and Poolbeg will also into a demerger agreement as part of the deal.
Open Orphan's share price is currently trading at 38.05p, up 6.28% following the news. At the open, it jumped as high as 39.5p.
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